September 22, 1992M22-4, Part IV
CONTENTS
CHAPTER 10. ADVANCE AND SPECIAL PAYMENTS
SUBCHAPTER I. ADVANCE PAYMENTS
PARAGRAPHPAGE
10.01 General...... 10-1
10.02 Definition and Eligibility Requirements...... 10-1
10.03 Advance Payment Not Payable...... 10-1
10.04 Advance Payment Award Information...... 10-2
10.05 Earliest Processing Date for Advance Payment Award...... 10-3
10.06 Latest Processing Date for Advance Payment Award...... 10-3
10.07 Special Payment for Advance Payment Request...... 10-4
10.08 Processing Advance Payment Award on a Chapter 35 A-Type Master Record...... 10-5
10.09 Issuance of Advance Payment Award Letter...... 10-5
10.10 Issuance of Advance Payment Check...... 10-5
10.11 Issuance of VA Form 22-1999V...... 10-6
10.12 Advance Payment Applied to Accounts Receivable...... 10-6
10.13 Processing Changes to Master Records After Processing Advance Payment Award...... 10-7
10.14 Delivery and Return of Advance Payment Check...... 10-8
10.15 Receipt of Certification of Delivery and Clearing the Bar or Control...... 10-9
10.16 Delinquent Certification of Delivery and Automatic Termination Advance Payment Bar Cases
(Other Than IHL Training Type A or B)...... 10-9
10.17 Delinquent Certification of Delivery and Follow-up Notice -Advance Payment Control Cases
(IHL Type Training A or B)...... 10-10
CONTENTS (Continued)
CHAPTER 10. ADVANCE AND SPECIAL PAYMENTS
SUBCHAPTER II. SPECIAL PAYMENTS
PARAGRAPHPAGE
10.18 Criteria for Special Payment...... 10-12
10.19 Enrollment Certification...... 10-12
10.20 Processing the Special Payment...... 10-13
10-1
September 22, 1992M22-4, Part IV
CHAPTER 10. ADVANCE AND SPECIAL PAYMENTS
SUBCHAPTER I. ADVANCE PAYMENTS
10.01 GENERAL
An A/P (advance payment) is payable under the conditions described in paragraph 10.02 below. An A/P helps a claimant pay expenses at the time of registration. A/P is not available for apprenticeship/on-the-job, correspondence or flight training.
10.02 DEFINITION AND ELIGIBILITY REQUIREMENTS
a. Definition. An A/P is the amount payable for the initial month or fraction thereof in which the term begins plus the amount payable for the following month.
b. Eligibility Requirements. Adjudication may process an A/P if all of the following apply:
(1) The claimant signs the A/P request on the enrollment certification. A separate document requesting A/P, signed and dated by the claimant and attached to the enrollment certification, is also acceptable.
(2) The school has certified to VA that it can satisfactorily carry out the A/P provisions of law (38 U.S.C. 3680(d)(4)(B)(formerly 1780). Adjudication can determine from OLAF (On-Line Approval File) if A/P is payable at a school.
(3) There are more than 30 days between terms and no interval payment will be paid.
(4) The student is enrolled for at least half-time training.
c. Timeliness Requirements
(1) VA must receive the enrollment certification with the A/P request at least 30 days, but not more than 120 days, in advance of the registration.
(2) A regional office may lower the 30-day limit if local conditions permit. See paragraph 10.06 regarding the latest date for authorizing A/Pawards.
10.03 ADVANCE PAYMENT NOT PAYABLE
a. Advance Payment Request Does Not Meet Eligibility Requirements. If an A/P may not be honored because it does not meet one or more of the A/P requirements in paragraph 10.02 b or c, take the following actions:
(1) Responsibilities of Veterans Services Division. The ELR (Education Liaison Representative) will advise the school of the problem.
(2) Responsibilities of Adjudication Division
(a) Notify the claimant that regular payment will be made instead of A/P (the first check will be sent to the claimant, not to the school), and why.
(b) Either return the enrollment certification to the school for re submission to VA as a confirmed enrollment or hold it to be confirmed by telephone before award action. Do not confirm chapter 30 awards. See chapter 1 for the definition of a confirmed enrollment.
(c) For award preparation, see paragraph 10.04c for processing a non-A/P award.
b. Advance Payment Not Payable - Other Reasons
(1) If the A/P is properly requested and timely received in VA, but for some reason cannot be processed in time for the A/P to be sent to the school, notify the claimant and the school that regular payment will be made instead of the A/P (the first check will be sent to the claimant, not to the school), and why.
(2) Except for chapter 30, confirm the enrollments by telephone before award action. Chapter 30 requires monthly certifications; therefore, confirmation is not required.
10.04 ADVANCE PAYMENT AWARD INFORMATION
a. Name and Address Segment
(1) The claimant's name must be shown on the first address line of the award and must not exceed 20 positions. If any part of the name is entered on the second or third address line, that part of the name will be overlaid with the school's address and will not be shown on either the A/P check or on VAForm22-1999V, Certification of Delivery of Advance Payment and Enrollment. To prevent issuance of an A/P with an incomplete or missing name, awards must show a "reduced name" in the address segment. A "reduced name" consists of the first initial, the second initial if a second initial is present and the surname. Complete the award as follows:
(a) Target 312/412/350 Education Award Screens. For a Target award, if an address change must be done to enter the reduced name, request the 601 Change of Address screen during CDAT/CADJ processing. Change the address in the PIF (pending issue file) any time before the award is authorized to insure that the new address is part of the award transaction.
(b) VA Form 22-1997, Out-of-System Education Award. If the name of record for out-of-system awards exceeds one address line, complete the name and address fields using the "reduced name" and address. Check "YES" in the "new address" field so that personnel processing the manual award know to reflect the "reduced name."
(2) If the claimant is receiving his or her benefits through a fiduciary, the school address will override the claimant's name. Therefore, there would be no claimant's name, just a fiduciary's name on the A/P check and VA Form 22-1999V. In this case, prepare an A/P special payment and award in accordance with paragraph10.07 to include the claimant's name, the fiduciary's name, and the school's name and address.
b. Advance Pay Reason Codes (Target Awards)
(1) To have Target pay an A/P, enter "0X" for original awards and "6X" for reentrance awards in the effective reason field on the award lines of the 312/412/350 screens.
(2) Reason codes 0X and 6X also serve to have Target set a control or a bar as indicated below for the confirmation of the award data.
(a) For IHL (Institution of Higher Learning) cases (type training A orB), Target sets a control. This control is called a COD (Certification of Delivery). The control will not prevent issuance of subsequent benefits when due, except for chapter 30. An operator in the chapter 30 system cannot even process a monthly certification without clearing the COD bar.
(b) For other than IHL cases, a bar is set to ensure the return of VAForm 22-1999V on a timely basis. The bar prevents issuance of benefits for subsequent periods until it is cleared.
c. Advance Pay Reason Codes (Non-Target Awards). Enter "0X" for original awards and "6X" for reentrance awards in the effective reason field on the award line entries of VA Form 22-1997 for out-of-system awards.
(1) Show any legend such as "CH 106 - ADVANCE PAY" in the "remarks" space on VAForm 22-1997.
(2) To ensure that the finance activity has the full name and address (including ZIP code) of the school to which the A/P check should be mailed, include this information on VA Form 22-1997 in the "remarks."
d. Awards for Advance Payment Not Payable. An A/P request which cannot be authorized before the enrollment effective date or fails to meet the eligibility requirements in paragraph 10.02b will not be prepared for A/P. This includes chapter 35 awards which have previously rejected and cannot be resubmitted before the effective date of the award.
(1) Except for chapter 30, contact the school, preferably by telephone, to confirm the enrollment.
(2) Prepare a special payment if conditions meet the criteria in paragraph10.18. (See par. 10.07 for Target special payment procedures.)
(3) Prepare a regular entrance or reentrance award (reason code 00 or60).
10.05 EARLIEST PROCESSING DATE FOR ADVANCE PAYMENT AWARD
a. Do not process an A/P award more than 120 days before the effective date of the first enrollment period. If an operator enters a chapter 32, 35, or 106 Target A/P award earlier than 120 days, Target shows the message "ADV PYMT AND AWD DATA ARE INCONSISTENT". If an operator enters a chapter 30 or 106 Target A/P award earlier than 120 days, Target shows the message "EFF DATE MORE THAN 120 DAYS IN FUTURE".
b. Adequate liaison with schools should ensure that A/P enrollment certifications are not submitted more than 120 days before the commencement date. However, schools should be encouraged to submit A/P enrollment certifications at least 30 days in advance of the commencement date.
10.06 LATEST PROCESSING DATE FOR ADVANCE PAYMENT AWARD
a. Limitations to Processing Late Advance Payments
(1) During registration and the first few days of a term, a school may not have sufficient personnel to handle regional office requests for confirmation of unconfirmed enrollment certifications.
(2) Under such or similar circumstances, a regional office may authorize A/P awards (reason code 0X or 6X) for 10 days following the effective date of the award, in lieu of confirming the enrollment before authorizing a regular award. (This confirmation requirement does not apply to chapter 30 awards.) This 10-day deviation will be made only at the discretion of the regional office Director. This does not preclude the requirement that an A/P special payment be authorized in these cases in accordance with paragraph 10.07a if the circumstances warrant special A/P.
b. Latest Date for Non-Target Advance Payment. The latest date for the authorizer to sign an out-of-system award prepared on VA Form 22-1997 is 10 days after the effective date of an A/P award. Awards signed by the authorizer after this date must be confirmed and not be prepared as A/P awards. (This confirmation requirement does not apply to chapter 30 awards.)
c. Latest Date for Target Processing of Advance Payment
(1) Target has an edit that prevents the authorization of an A/P award after 10 days following the effective date of the enrollment period, except for chapter 106. The 10-day rule should be followed for chapter 106 to the extent allowed by the interim chapter 106 system.
(2) For a chapter 30 or 32 case, if the effective date is more than 10 days in the past, Target changes the effective reason to 00 or 60. The Remarks section shows the following message: CONFIRMATION OF ENROLLMENT REQUIRED, EFFECTIVE REASON CHANGE. Confirm the claimant's enrollment with the school's certifying official before authorizing the award.
10.07 SPECIAL PAYMENT FOR ADVANCE PAYMENT REQUEST
a. Regional offices may process one-time A/P special payments (transaction code 06G) in those cases in which an A/P has been properly requested in accordance with paragraph 10.02b but Target will not process the award in sufficient time for a check to be at the school when the claimant enrolls. Use these procedures only when routine processing (see the schedule of operations for each benefit) will not timely deliver an A/P check. These procedures apply to chapters 32 and 35 only. There is no similar provision under chapters 30 and 106.
NOTE: The Target HELP command, available only under chapter 35 (see pt. VII, ch.2), may not be used to process an A/P special payment. The system will not allow a special payment to be processed before the beginning date of the enrollment period using the HELP command.
b. The name and address segment on the A/P special payment will be as follows.
NAME OF PAYEE
NAME OF SCHOOL
ADDRESS OF SCHOOL
ADDRESS OF SCHOOL
ADDRESS OF SCHOOL INCLUDING ZIP CODE
(1) After the 06G transaction has processed, process the A/P award (beginning reason code 0X or 6X).
(a) An A/P check is not actually issued from the award action since an 06G transaction (special payment) establishes an accounts receivable in the master record.
(b) In chapter 35 cases, Target does not issue a computer-generated letter since the A/P is applied to liquidate the accounts receivable. However, to prevent Target from issuing a NOE (Notice of Exception) with message code 581, EDUCATION LETTER NOT WRITTEN - RECORD CONTAINS A/R, code the A/P award to suppress the computer-generated letter. Also send a dictated or form letter to the claimant. See paragraph 10.12.
(c) In chapter 32 cases, Target issues a letter (see pt. VI, ch. 6), but does not generate a NOE message. Suppress the letter and send a dictated or form letter to the claimant. See paragraph 10.12.
(2) For chapter 35 cases, Target generates a NOE with message code 962, ADVANCE PAY APPLIED TO A/R - CONFIRM ENROLLMENT. For chapter 32 cases, Target generates a NOE message code 8040, A/P NOT PAID - CONFIRM ENROLLMENT. Forward these NOE messages without the claims or DEA folders to VSD (Veterans Service Division) for confirmation of the enrollment.
(a) Upon receipt of these messages, VSD contacts the school, preferably by telephone, if an A/P bar exists (course not leading to a standard college degree), to confirm the enrollment. Annotate the messages with the name and title of the school official, the date, and any changes in enrollment. Also, sign and date the NOE message.
(b) If VSD secures verbal certification from the school's certifying official by telephone, the school official does not have to submit any additional written verification.
(c) At local option, forward these messages to another activity to secure confirmation from the school's certifying official. After confirming the enrollment and any changes, forward the annotated messages to the appropriate activity as follows:
1. No Change. Forward the NOE messages to Veterans Services Division or another activity to process a transaction 35A (CLEAR COD) using the CERT command in the Target system. Drop-file the NOE messages after processing the 35A transaction.
2. Changes. Forward the changes to Adjudication Division for further review and removal of the A/P bar or control. Process the changes with or without the claims folder.
c. In those cases when a regular original or reentrance award must be processed in lieu of an A/P award, regular special payment procedures will be followed as outlined in paragraphs 10.18-10.20.
10.08 PROCESSING ADVANCE PAYMENT AWARD ON A CHAPTER 35 A-TYPE MASTER RECORD
a. If an operator processes an A/P award against an A-type (running) master record, Target recycles the award until the current enrollment terminates.
b. Target generates NOE message 544, TRANSACTION RECYCLED - NO M/R OR WRONG TYPE M/R. No special action is required as the result of this message since it is informational only. Since the award has not rejected, Target removes the pending issue when the master file is updated.
c. When the current enrollment terminates and the master record becomes an E-type (terminated) record, Target processes the award in the next cycle and updates the master record to show the A/P award.
NOTE: The chapter 30, 32, and 106 systems do not have a similar provision. Operators must process A/P awards against a terminated master record.
10.09 ISSUANCE OF ADVANCE PAYMENT AWARD LETTER
Upon processing of an A/P award, Target sends a computer-generated letter to the claimant advising him or her of the action taken. The letter also states that the A/P check is being sent to the school where the claimant may pick it up upon registration, but not more than 30 days before the commencement of the course. Target sends the computer-generated award letter when the award is processed, but the A/P check may not be issued for some time in the future. To check the text of this letter or system limitations, consult the appropriate manual part.
10.10 ISSUANCE OF ADVANCE PAYMENT CHECK
a. If the beginning date of the A/P award will be reached in 40 days, the award will be processed for payment by the Hines BDC (Benefit Delivery Center). For chapter 106, the timing of the release of the check is different. (See par. 10.13d.)
b. If the beginning date of the award is between 41 and 120 days from the processing date, Target establishes the award as a future award to be updated and processed for payment when the beginning date becomes less than 41 days away.
c. When issued, the A/P check is made payable to the claimant. The Treasury Disbursing Center mails the A/P check to the school in an individual check envelope.
d. Target determines the address of the school to which the check will be mailed from the facility code in the individual's education master record.
NOTE: The accuracy of the facility code on education awards cannot be emphasized enough.
(1) If the facility code fails to match an approved facility code, Target sends the A/P check to the agent cashier at the regional office (to include RPOs (Regional Processing Offices)) that prepared the award.
(a) The agent cashier notifies the ELR that an A/P check has been received. The ELR takes appropriate action to correct the facility code in the facility file. The Adjudication Division takes appropriate action to correct the facility code in the claimant's education master record.
(b) The agent cashier is then informed of the name and address of the school to which the A/P check should be sent.
(2) The agent cashier sends the check and a VA Form 22-1999V to the proper school.
e. Each benefit system issues A/Ps according to its own Schedule of Operations. (See pt. II, ch 1 for the various schedules.)
f. After Target processes the A/P award, resolve inquiries concerning the status of the A/P award by checking the M21 Education Master Record Status screen. Resolve chapter 106 inquiries by checking the 350, 351, and 352 screens. If necessary, use the TINQ (Treasury Inquiry) command (see pt. II, ch. 8.) to verify additional details.
(1) For chapter 30, the last activity field is identified with "A/P".
(2) For chapter 30, 32, and 35, the ADVANCE PAY field shows one of the following:
(a) PENDING, if the award has been processed, but the check has not been issued;
(b) PAID, if the check has been issued; or
(c) Blank or N/A, if no A/P award has been processed.
(3) The interim chapter 106 system does not have a specific indicator to show A/P information. To determine the status of an A/P, review the 350, 351 and 352 screens. Review the following information:
(a) Before release of the A/P check, an A/P shows as retroactive proceeds on the 352 screen.
(b) After the release of the A/P check, Target shows it as a payment history. The 350 and 351 screens show DLC (Date Last Certified) with the beginning date of the award. These screens show DLP (Date Last Paid) as the day following the ending date of the A/P period.